Company update: Marfrig – reports FY10 revenue increase and EBITDA growth
Marfrig Alimentos S.A., a global food company, reported its results for the full-year 2010 ending December, 31, 2010, establishing the foundation for robust profits in the medium and long term.
Market share gains in Brazil that accelerated in the fourth quarter, synergies from the SEARA acquisition and distribution, new-found opportunities with Keystone, and the capacity to pass higher costs on to consumers through its distribution channels helped the company to offset higher grain and cattle prices, a 2009 Real currency gain and challenging environments in Argentina and Uruguay.
FY10 HIGHLIGHTS
- Consolidated gross revenues grew by 14.2% to R$ 20.6bn for FY2010 on a pro forma basis from FY2009 pro forma* revenues of R$ 18.1bn, following strong rapid gains in the Brazilian beef segment and larger sales in both domestic and export markets in SEARA;
- Consolidated FY2010 net revenues reached R$ 15.9bn, up to 65.0% from R$ 9.6bn in FY2009;
- In a pro forma basis, consolidated EBITDA reached R$ 1.7bn, 127.4% upon R$ 765.4m in FY2009; EBITDA margin rose to 8.9% in FY2010 from 4.5% in FY2009;
- Consolidated EBITDA of R$ 1.5bn reached in FY2010, up to 107.2% from R$ 725m in FY2009; EBITDA margin continued to improve, rising to 9.5% in FY2010 from 7.5% in FY2009;
- Record segment results with Brazilian beef production increased 69.2% to 2.65m cattle heads from 1.57m. Chicken in Brazil and Europe increased 96.5% to 838.5 million heads from 426.7 million heads, while total pork jumped 164.4% to 2.6m from 992.7k and turkey rose a strong 181.0% to 5.99 million from 2.13 million. Marfrig became the second-largest chicken and pork exporter in Brazil, according to SECEX (Foreign Trade Secretariat of the Ministry of Development, Industry and Foreign Trade). In Brazil, Marfrig became the second biggest provider of processed and specialty pork and poultry-derived products.
Consolidated FY2010 net income reached R$146.1m or R$0.42 per share, down by 72.7% compared to FY2009. On a pro-forma basis, net profit achieved R$259.1m in FY2010, a 44% growth when compared to consolidated pro forma net income of R$179,9m in FY2009.
“The acquisition of Keystone and SEARA have made Marfrig one of the world’s biggest global food processors with operations in 22 countries and five continents, providing meats, poultry and leather to millions of consumers every year,” said Chairman and CEO of Marfrig Group, Marcos Antonio Molina dos Santos.
“In 2010, we worked hard to strengthen our global platform, grow revenues and build customer value despite challenging commodity prices and difficult global macroeconomic conditions. Our goal in 2011 is to continue to deliver operational results while capitalizing on significant growth opportunities that exist across the Marfrig supply chain. This includes launching new SEARA products in Brazil, Argentina, Uruguay and Europe, whilst finding cost savings opportunities, improving our debt profile and creating value to our shareholders in 2011.”
